None of us like to see our customers churn. Especially when, if we use the average US$400 (CA$521) customer acquisition cost of Bell and Telus, this means that the top four United States carriers are not only kissing goodbye to $65 million per month in lost future revenue, but another $76 million in customer replacement costs. That’s a lot of money.
So, what can we do about it?
If the current climate of uncertainty has put your major new projects on hold, perhaps it’s time to relook at some of your existing products and services – and grow revenue from what you have already, rather than experiment with new and unproven concepts.
Start by thinking:
- What do your customers already value and pay for?
- What improvements could you make to their user experience of those products and services, so that they might pay you more for it?
- What products and services do you currently give to customers for free?
- What might you need to do and/or improve to convince your customers that those products and services deliver enough value that they should pay for them?
One prime example is a telco’s email service. Email hosting tends to be like that shiny jacket that has always been in the cupboard, but most telcos don’t typically know when to pull it out or how to use it to their best advantage. This is despite the fact that some telcos have found customers of paid email will spend three times more across their telco brand, and The Radicati Group has predicted that more than 333 billion emails will be sent per day by year-end 2022.
Hosting providers, on the other hand, understand the value of email and know customers will pay for both email and upsells; all you have to do is ask. Only 3 percent of hosting providers (compared to 59 percent of telcos) in the U.S. give email to customers for free.
If your company is currently giving away products and services (such as email) for free, it’s time to stop, realise their value (improving them if needed), so you can fight churn and grow revenue with the resources that you already have, rather than waiting for future results from infrastructure and digital projects that are currently on hold indefinitely.